Tax on Large Fortunes: the recent international debate and the situation in Brazil

Many discussions have taken place in Brazil about legislation pertaining to the Tax on Large Fortunes (Imposto sobre Grandes Fortunas—IGF). In the current scenario, with the country facing a second consecutive annual decrease in tax revenue, the subject of the implementation of the IGF is gaining some traction, with its proponents vehemently arguing that it can represent a balancing mechanism for a possible increase in the tax burden, so that this increased burden would not fall exclusively on the poorest population through indirect taxes. The economic crisis, together with the political crisis, has reactivated the debate on tax reform, especially regarding demands for a less regressive and more efficient system.

The objective of this paper is to provide an overview of wealth tax in Brazil and around the world, as well as to present reflections on it from the perspective of economic and taxation theory